ROYAL Mail’s depot in Cannon Park, Middlesbrough, is set to close by 2012.

Around 250 jobs will be switched to Tyneside. Remaining operations will be merged with those at South Bank at a new depot to be built on Teesside.

The move has been condemned by the local branch of the Communication Workers Union.

Royal Mail says it urgently needs to modernise its mail processing network.

In its shake-up of the mail centres network in the North-east and Yorkshire, Royal Mail plans to operate with a regional network of just three mail centres - Tyneside, Leeds and Sheffield.

On Teesside its means:

:: The transfer of processing work from Teesside and Darlington Mail Centres into an extended Tyneside Mail Centre;

:: Darlington Delivery Office to remain on site in the existing mail centre building, and

:: Middlesbrough Delivery Office and South Bank Delivery Office in Middlesbrough to be amalgamated on a new site.

The company hopes to achieve the changes without compulsory redundancies.

Alison Wright, regional operations director for Royal Mail in the North-east, said: “Our mail centres are facing considerable challenges, with competition from rival operators and electronic communication increasing and mail volumes continuing to decline, meaning there are now 16 million fewer letters posted each day compared with five years ago. So we urgently need to modernise and re-shape our mail processing network. Our service to customers will continue to be a top priority.”

Peter Hall, secretary of the Cleveland Amalgamated Branch of the Communication Workers Union, said he doubted that many of the affected workers would take up the opportunity to work at the Newcastle centre.

“The timing of this announcement is classic - it is smack in the busy period leading up to Christmas. It is bound to affect morale,” he said.

Mr Hall said Royal Mail had paid lip service to the consultation process. Despite the union putting forward alternative proposals which would have achieved the required savings the company was going ahead with what it originally proposed. “People are very uncertain about the future,” he said.

Councillor Charlie Rooney, the leader of Middlesbrough Council’s Labour Group, said the news was disappointing but there were some positive aspects.

“It is obviously frustrating to hear that processing work will now take place on Tyneside. We, as Labour councillors, do not believe this is the right way to proceed. However it is pleasing to hear the delivery functions will remain in Middlesbrough and that this will protect jobs on Teesside.

“We as a council, and also the Labour Group, have been working alongside Royal Mail and the Communication Workers Union for some time to try to protect jobs at the sorting and delivery office. We have negotiated with Royal Mail, pushing hard for them to relocate in the Middlesbrough area and this has been achieved helping to keep hundreds of people in work.”

Independent Middlesbrough councillor Ken Walker, who has also spoken out to preserve the Royal Mail operations in Middlesbrough, said: “Teesside has once again lost out to Newcastle.

“We must not once again simply accept this callous snub by Royal Mail and our Government. I hope Middlesbrough’s Independent Mayor Ray Mallon will now take this fight to Westminster.”